Real Estate Investing Is Risky!
I was listening to an audio book while I was driving the other day, as I always do in the car if nobody’s riding along. And the author said something that caught my attention. He said “Risks only feel risky until you do them”.
Think about that…
It’s so profound yet so profoundly simple. Think of anything you’ve been frightened of doing in your life. Then after you do it, it’s not so bad!
The reason it struck me is that it’s the same for investing. Typically a beginner investor is not only frightened, but completely intimidated and often overwhelmed as well, by all the new information, the new skill sets they must learn and the new decisions they must deal with. I often tell a beginner investor, if you’re not at least a little scared – you’re not paying attention!
The first one is always the toughest. This is the hurdle, when conquered, sets the new investor apart from all the would-be’s and wanna-be’s out there. There are no official studies, but the figure we bet on in the Real Estate Industry is 1 person will invest (for every 10 that say they’re going to).
Many of these people even call themselves ‘an investor’ already – they just don’t have any Cebu Property investments yet!
REITs What Are They? Why? Or Why Not?
REIT stands for Real Estate Investment Trust. It’s pronunciation rhymes with ‘meat’. It is a structure formed for investors to invest in real estate, but the REIT structure allows them to do so much as they would invest in mutual funds in order to buy stocks. The resources are pooled and diversified. REITs can be publicly or privately held and an investor owns one or more shares of the REIT. And it, like everything else, has its pros and cons.
Firstly, like mutual funds, when your money is pooled with other people in groups, you are somewhat protected from most major catastrophes and the usually bumpy ride of the regular market. You can also get involved in projects that are otherwise completely out of reach of you financially and have a virtually hands-off investment.
You are not in control of your investing vehicle at all. Robert Kiyosaki equates it to driving a car without your hands on the wheel. You put your money in and trust on the reputation (or sales materials) of the REIT. Also, REITs are known to often over-pay for investments simply because they can and don’t take the time to research and negotiate as an individual would.
If you’re really interested in pursuing this route, I recommend reading “Investing in REITs” by Ralph Block and get out to Cebu and take a look at the new high rise condo building at 38 Park Avenue Cebu